In this video, Joel South highlights three reasons to worry about SandRidge Energy.
Numerous shifts in its business strategy that later forced it to sell assets to pay off debt. If production from its Mississippian Lime play doesn't produce needed revenues, SandRidge may need to sell more assets. Speaking of the Mississippian Lime, it's had more natural gas than originally expected, and even though natural gas prices have come off their lows, the real revenue drivers are oil and liquids, and these may not deliver as needed. CEO Tom Ward is in the crosshairs of the board and activist shareholders. Will Ward go? If so, how expensive will his departure be?Check out the video for more details.
Investors were startled after SandRidge plummeted when natural gas prices reached 10-year lows, but with the company focusing on growing liquids production, the future looks optimistic. If you are unsure about the future of this emerging oil and gas junior and are looking to find out more about its strengths and weaknesses, then check out The Motley Fool's premium research report detailing SandRidge's game plan and what to expect from the company going forward. To get started, simply click here now!
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